What does the seller of a put option hope will happen?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 14MC: What is a real option? What are some types of real options?
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What does the seller of a put option hope will happen? 

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An option contract indicates a contract that allows its buyer to buy or sell an underlying at the specified price on a future date. The call and put are the two option varieties. The option gives its buyer the right and not the obligation to trade on the future date for a payment to enter the contract recognized as the premium.

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